Playtika Enters into Agreement to Acquire SuperPlay, Creator of Hit Mobile Games Dice Dreams and Domino Dreams
Playtika Holding Corp. (NASDAQ: PLTK) has announced an agreement to acquire SuperPlay, a mobile gaming company, for $700 million with additional contingent consideration of up to $1.25 billion. The acquisition is expected to close in Q4 2024 and aims to strengthen Playtika's position in mobile gaming. SuperPlay, founded in 2019, has two successful titles: Dice Dreams and Domino Dreams, with a combined 1.7 million Average Daily Active Users as of August 2024.
The strategic benefits include acquiring scaled growing titles in high-growth categories, adding a talented development team, and cultural alignment. The transaction structure includes an upfront payment and performance-based earnouts. Playtika expects this acquisition to be a meaningful growth driver once completed.
Playtika Holding Corp. (NASDAQ: PLTK) ha annunciato un accordo per acquisire SuperPlay, una società di giochi mobile, per 700 milioni di dollari con un ulteriore corrispettivo condizionale fino a 1,25 miliardi di dollari. Si prevede che l'acquisizione si concluda nel quarto trimestre del 2024 e mira a rafforzare la posizione di Playtika nel settore dei giochi mobili. SuperPlay, fondata nel 2019, ha due titoli di successo: Dice Dreams e Domino Dreams, con un totale di 1,7 milioni di utenti attivi giornalieri a partire da agosto 2024.
I benefici strategici includono l'acquisizione di titoli in crescita su larga scala in categorie ad alta crescita, l'aggiunta di un team di sviluppo talentuoso e un allineamento culturale. La struttura della transazione comprende un pagamento iniziale e guadagni basati sulle performance. Playtika si aspetta che questa acquisizione diventi un motore significativo di crescita una volta completata.
Playtika Holding Corp. (NASDAQ: PLTK) ha anunciado un acuerdo para adquirir SuperPlay, una empresa de juegos móviles, por 700 millones de dólares con una consideración contingente adicional de hasta 1.25 mil millones de dólares. Se espera que la adquisición se cierre en el cuarto trimestre de 2024 y tiene como objetivo fortalecer la posición de Playtika en los juegos móviles. SuperPlay, fundada en 2019, cuenta con dos títulos exitosos: Dice Dreams y Domino Dreams, con un total de 1.7 millones de usuarios activos diarios hasta agosto de 2024.
Los beneficios estratégicos incluyen la adquisición de títulos en crecimiento a gran escala en categorías de alto crecimiento, la adición de un equipo de desarrollo talentoso y la alineación cultural. La estructura de la transacción incluye un pago inicial y ganancias basadas en el rendimiento. Playtika anticipa que esta adquisición será un motor significativo de crecimiento una vez completada.
Playtika 홀딩 공사 (NASDAQ: PLTK)는 슈퍼플레이(SuperPlay)라는 모바일 게임 회사를 7억 달러에 인수하기 위한 계약을 발표했으며, 최대 12억 5천만 달러의 추가 조건부 대가가 포함되어 있습니다. 인수는 2024년 4분기에 마감될 예정이며, Playtika의 모바일 게임 분야에서의 입지를 강화하는 것을 목표로 합니다. 2019년에 설립된 슈퍼플레이는 두 개의 성공적인 타이틀인 다이스 드림스와 도미노 드림스를 보유하고 있으며, 2024년 8월 기준으로 170만 명의 일일 활성 사용자를 기록하고 있습니다.
전략적 이점으로는 고성장 카테고리에서 성장하는 대규모 타이틀 인수, 재능 있는 개발 팀 추가, 문화적 일치 등이 있습니다. 거래 구조에는 선불 지불 및 성과 기반의 추가 금액이 포함됩니다. Playtika는 이 인수가 완료되면 의미 있는 성장 동력이 될 것으로 기대하고 있습니다.
Playtika Holding Corp. (NASDAQ: PLTK) a annoncé un accord pour acquérir SuperPlay, une société de jeux mobiles, pour 700 millions de dollars avec une contrepartie conditionnelle supplémentaire pouvant atteindre 1,25 milliard de dollars. L'acquisition devrait être finalisée au quatrième trimestre de 2024 et vise à renforcer la position de Playtika dans le domaine des jeux mobiles. SuperPlay, fondée en 2019, possède deux titres à succès : Dice Dreams et Domino Dreams, avec un total de 1,7 million d'utilisateurs actifs quotidiens en août 2024.
Les avantages stratégiques incluent l'acquisition de titres à forte croissance dans des catégories en expansion, l'ajout d'une équipe de développement talentueuse et un alignement culturel. La structure de la transaction comprend un paiement initial et des rémunérations basées sur la performance. Playtika s'attend à ce que cette acquisition devienne un moteur de croissance significatif une fois qu'elle sera finalisée.
Die Playtika Holding Corp. (NASDAQ: PLTK) hat eine Vereinbarung zur Übernahme von SuperPlay, einem Unternehmen für mobile Spiele, für 700 Millionen US-Dollar angekündigt, mit einer zusätzlichen, bedingten Gegenleistung von bis zu 1,25 Milliarden US-Dollar. Die Übernahme soll im vierten Quartal 2024 abgeschlossen werden und hat zum Ziel, die Position von Playtika im Bereich mobile Spiele zu stärken. SuperPlay, gegründet im Jahr 2019, hat zwei erfolgreiche Titel: Dice Dreams und Domino Dreams, mit insgesamt 1,7 Millionen täglich aktiven Nutzern im August 2024.
Die strategischen Vorteile umfassen die Übernahme von wachstumsstarken titeln in wachstumsstarken Kategorien, die Hinzufügung eines talentierten Entwicklungsteams und kulturelle Ausrichtung. Die Transaktionsstruktur umfasst eine Vorauszahlung und leistungsabhängige Vergütungen. Playtika erwartet, dass diese Übernahme ein bedeutender Wachstumstreiber sein wird, sobald sie abgeschlossen ist.
- Acquisition of two successful mobile games with 1.7 million Average Daily Active Users
- Potential for up to $1.25 billion in additional earnings based on performance targets
- Addition of a proven development team with two more games in the pipeline
- Expected to drive meaningful growth for Playtika
- Expansion into high-growth Coin Looters and Board game categories
- Large upfront cost of $700 million, potentially impacting short-term financials
- Risk associated with achieving financial targets for earnout payments
- Potential integration challenges with the new studio
- Evaluation of financing alternatives and debt maturities in the near-term
Insights
Playtika's $700 million acquisition of SuperPlay, with potential earnouts up to
The transaction's strategic value lies in Playtika's expansion into high-growth Coin Looters and Board game categories. However, investors should note the substantial cash outlay and potential impact on Playtika's balance sheet. The company's commitment to its dividend and capital return program amid this large acquisition warrants attention, as it may affect future financial flexibility.
This acquisition signifies Playtika's strategic move to strengthen its position in the competitive mobile gaming market. By acquiring SuperPlay, Playtika gains access to a proven team with a track record of launching successful games, potentially accelerating its growth in the high-growth Coin Looters and Board categories. The addition of Dice Dreams and Domino Dreams to Playtika's portfolio diversifies its offerings and expands its user base.
The mobile gaming industry's consolidation trend continues, with larger companies acquiring successful smaller studios to fuel growth. This move could spark similar acquisitions in the sector. Investors should monitor how effectively Playtika integrates SuperPlay and leverages its expertise to drive overall company growth and maintain competitiveness in the rapidly evolving mobile gaming landscape.
The acquisition of SuperPlay brings valuable technological assets to Playtika. SuperPlay's expertise in creating engaging mobile games, particularly in the Coin Looter and Board game genres, can potentially enhance Playtika's game development capabilities. The integration of SuperPlay's team, led by industry veterans, could foster innovation and knowledge exchange within Playtika's existing development teams.
Investors should pay attention to how Playtika leverages SuperPlay's technology and talent to improve its existing games and develop new titles. The success of this acquisition will largely depend on Playtika's ability to maintain SuperPlay's creative culture while integrating it into the larger corporate structure. The potential for technological synergies and accelerated game development could be a significant driver of future value creation for Playtika.
- Acquisition of SuperPlay Expected to Provide Attractive Growth Opportunity at a Meaningful Scale
- Adds a Proven Studio with a Track Record of Launching and Scaling New Games
- Acquisition Expected to Close in the Fourth Quarter of 2024
- Management will Host a Live Q&A Session Tomorrow at 5:30 a.m. Pacific Time
HERZLIYA, Israel, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK), a mobile games pioneer and interactive entertainment leader, today announced it has entered into a definitive agreement to acquire SuperPlay, a mobile gaming company based in Tel Aviv, Israel, for
Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, SuperPlay has emerged as expert game makers with two successful titles - Dice Dreams, a fast-growing Coin Looter game, and Domino Dreams, a popular Board game, and two more games currently in development. In 2024, both Dice Dreams and Domino Dreams have grown rapidly, boasting a combined 1.7 million Average Daily Active Users as of August. Gilad and Eyal will continue to lead SuperPlay as its own studio within Playtika.
“We see the acquisition of SuperPlay as a key move in strengthening Playtika’s leadership in mobile gaming, driving growth with scaled titles, and unlocking new opportunities,” said Robert Antokol, Chief Executive Officer. “SuperPlay’s proven talent and success in navigating complex environments align seamlessly with our team. Together, we’re expanding our ability to deliver exceptional experiences to players worldwide.”
“We’re incredibly excited for this opportunity,” said Gilad Almog and Eyal Netzer. “It is a testament to our amazing team who bring creativity and passion to everything we make. With Playtika's backing and support, we'll continue growing the most memorable and engaging games in their category, and exchange knowledge that will propel each other to new heights.”
Strategic and Financial Benefits for the Acquisition
- Acquires scaled growing titles in the high-growth Coin Looters and Board categories
- Addition of a talented development team with two proven hits and two more in the pipeline
- Cultural alignment with founders and team
- Expected to move the needle for Playtika’s proforma growth
- Earnout transaction structure rewards performance while mitigating downside risk
Proposed Transaction Structure
Playtika will acquire SuperPlay for
The Company remains committed to its quarterly dividend and capital return program. This transaction has been approved by the Board of Directors of Playtika and of SuperPlay. The transaction is expected to close in the fourth quarter of 2024. The proposed acquisition is subject to the satisfaction of customary closing conditions and regulatory approvals. The Company will provide updated M&A capital allocation guidance as part of FY2024 earnings.
Guidance
Playtika will update its guidance for the fiscal year during Q3 2024 earnings.
Webcast and Conference Call Information
Playtika management will host a conference call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) tomorrow to discuss the transaction. The conference call can be accessed via a webcast accessible at investors.playtika.com. A replay of the call will be available through the website one hour following the call.
Advisors
Morgan Stanley & Co. LLC is acting as exclusive financial advisor to Playtika and Furth, Wilensky, Mizrachi, Knaani – Law Offices is serving as legal counsel. The Raine Group and Aream & Co are acting as financial advisors to SuperPlay. Raz, Dlugin & Co. is serving as legal counsel.
About SUPERPLAY, LTD.
Founded in 2019 by industry veterans Gilad Almog, Eyal Netzer, and Elad Drory, SuperPlay is one of the fastest growing mobile gaming companies in the world. Headquartered in Israel with additional offices in Ukraine and Romania, they are known for their class-leading production value, marketing, and analytics expertise. Since its founding, SuperPlay has launched two back-to-back hit games: Dice Dreams and Domino Dreams, building a brand that players around the world love, and disrupting two genres with innovative gameplay. SuperPlay is backed by NFX, 83North, VGames, General Catalyst, Key1 Capital, O.G. Venture Partners, and Gal Ventures.
About Playtika Holding Corp.
Playtika (NASDAQ: PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has employees across offices worldwide.
Forward Looking Information
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. All statements other than statements of historical facts contained in this press release, including statements regarding the completion of the transaction and the timing thereof as well as the effects thereof, our liquidity profile and our capital allocation strategy, are forward-looking statements. Further, statements that include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “intend,” “intent,” “may,” “might,” “potential,” “present,” “preserve,” “project,” “pursue,” “should,” “will,” or “would,” or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements.
We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves significant risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment and industry. As a result, it is not possible for our management to assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated, predicted or implied in the forward-looking statements. Playtika does not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation:
- actions of our majority shareholder or other third parties that influence us;
- our reliance on third-party platforms, such as the iOS App Store, Facebook, and Google Play Store, to distribute our games and collect revenues, and the risk that such platforms may adversely change their policies;
- our reliance on a limited number of games to generate the majority of our revenue;
- our reliance on a small percentage of total users to generate a majority of our revenue;
- our free-to-play business model, and the value of virtual items sold in our games or in the SuperPlay portfolio, is highly dependent on how we manage the game revenues and pricing models;
- our inability to obtain necessary governmental or other approvals in a timely fashion or at all or our inability to otherwise complete this acquisition and integrate the SuperPlay portfolio into our operations successfully or realize the anticipated benefits of the acquisition;
- our inability to refinance our revolving credit facility which is set to expire in March 2026 or otherwise obtain additional financing, in each case, on favorable terms or at all;
- the ability of the SuperPlay portfolio to compete in a highly competitive industry with low barriers to entry;
- our ability to retain existing players, attract new players and increase the monetization of our player base;
- we have significant indebtedness and are subject to the obligations and restrictive covenants under our debt instruments;
- the impact of the COVID-19 pandemic or other health epidemics on our business and the economy as a whole;
- our controlled company status;
- legal or regulatory restrictions or proceedings could adversely impact our business, including the SuperPlay portfolio, and limit the growth of our operations;
- risks related to our international operations and ownership, including our significant operations in Israel and Ukraine and the fact that our controlling stockholder is a Chinese-owned company;
- geopolitical events such as the Wars in Israel and Ukraine;
- our reliance on key personnel, including our ability to retain the key personnel of SuperPlay;
- market conditions or other factors affecting the payment of dividends, including the decision whether or not to pay a dividend;
- uncertainties regarding the amount and timing of repurchases under our stock repurchase program;
- security breaches or other disruptions could compromise our information or our players’ information and expose us to liability; and
- our inability to protect our intellectual property and proprietary information could adversely impact our business.
Contacts
| Investor Relations | Press Contact | |
| Tae Lee | Eric Barnes | |
| Tael@playtika.com | Eric.barnes@trailrunnerint.comm |
FAQ
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